Real estate sector in India is witnessing significant growth. The main growth thrust has been backed by the favorable demographics, increase in the purchasing power, existence of customer friendly banks, prevalence of the housing finance companies, professionalism in the real estate sector and favorable reforms initiated by the government to attract global investors. In order to keep the track of the overall sentiments of the reality stocks IISL has developed the CNX Realty Index.

The index is a Free Float methodology based weighted index with base date of December 29, 2006, indexed to a base value of 1000.

The CNX Realty Index represented about 91.08% and 64.43% of the full market capitalization and aggregate turnover of the last one month for the period August 28, 2007 of the Real estate sector Universe respectively. The average total traded value for the last six months of all CNX Realty Index constituents stood approximately at 6.51% of the traded value of all stocks on the NSE. CNX Realty Index constituents represented about 4.48% of the total market capitalization as on August 28, 2007.

For the inclusion in the index, the proposed reality companies shall have to fulfill the following conditions as laid down here under:

1. Company's market capitalization rank in the reality universe should be among the top 500.

2. Company’s turnover rank in the universe should be in the top 500.

3. Company should have a positive Net worth.

4. A company, which comes out with an IPO, will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 1-month period.